Study justification and background

Transcription

1 Public private cooperation in sustainable city development - the case study of public-private partnership in railway station area regeneration project Dr ANNA WOJEWNIK-FILIPKOWSKA Anna Wojewnik Filipkowska 1 Study justification and background Degradation of urban areas is a typical problem of many cities. The activities included in the process of regeneration are aimed at solving the problem in its: social, economic, urban planning dimensions. 2 1

2 Study justification and background The city is: a cultural space of different values, an area of business life, a product of planners and architects. Successful regeneration: better quality of life for the residents, stimulate the economy, restore spatial order. public private partnership and social participation of the city stakeholders (local community, entrepreneurs, companies, local government) 3 Study justification 1. Actual problems of cities: shortage of investment funding, deterioration of buildings, social pathologies, the citizens dissatisfaction of the amount and quality of infrastructure. 2. Potential represented by public and private sectors cooperation that respects the principles of sustainable development. 4 2

3 Interrelated problems Limited public budget. Successful cooperation requires identification, understanding and respect of the partnerʹs motives and behaviour. 5 The aim of the article identify the dimensions of public private arrangements show their application in the process of urban regeneration on the example of two railway area regeneration case studies in Sopot (Poland), in Melbourne (Australia). 6 3

4 Case study choice reasoning the type of the project (regeneration), procurement (public private cooperation), former use profile of the site (railway station) future use profile of the site (railway station and commercial facilities). 7 Presentation outline 1. Dimensions of private public cooperation. 2. International experience & opportunities of public private cooperation. 3. Focus on railway station area projects. 4. Public private cooperation in Australia. 5. Public private cooperation in Poland. 6. Summary and conclusions. 8 4

5 1. Dimensions of private public cooperation 9 Dimensions of private public cooperation (cd) Scope of DB DBO DBFO BOT BOOT BOO contract Design* private private private public public public Build private private private private private private Finance public public private private private private Operate public private private private private private Own public public public public private throughout the contract private 10 5

6 2. International experience & opportunities of public private cooperation Country/Sector Roads Urban railways Heavy Railways Housing Accomodation Sports & leisure UK C/O C/O - C/O C/O C/O France C/O P/C P/C - P P Spain C/O P D - P D Hungary* P/C D - P/C P/C P Italy C P/C - P P/C P Germany P/C D D - P/C P Latvia* P - - P/C D - Estonia* D D - P/C - - Greece C P P/C Poland* P/C D D D D D Czech Rep.* P D D P P P Slovakia* P - - D D D Lithuania* - D D - - P Austria P - P - D - Ukraine** P - D International experience & opportunities of public private cooperation Country/Sector Roads Urban railways Heavy Sports and Railways Housing Accomodation leisure United Kingdom C/O C/O C/O C/O C/O France C/O P/C P/C P P Spain C/O P D P D Hungary* P/C D P/C P/C P Italy C P/C P P/C P Germany P/C D D P/C P Latvia* P P/C D Estonia* D D P/C Greece C P P/C Poland* P/C D D D D D Czech Republic* P D D P P P Slovakia* P D D D Lithuania* D D P Austria P P D Ukraine** P D 12 6

7 International experience & opportunities of public private cooperation (cd) Country/Sector Roads Urban railways Heavy Railways Housing Accomodation Sports & leisure Australia C/O P C P P P/C Canada P/C P - - P P Japan D D D P C P/C United States P P D D - D 13 International experience & opportunities of public private cooperation (cd) without particular PPP legislation: United Kingdom, Germany, Slovakia, Austria, Australia, the legislation has been proposed: Italy, Lithuania, Estonia, Hungary, the comprehensive legislation or sector specific legislation: France, Czech Republic, Latvia, Poland. 14 7

8 3. Focus on railway station area projects Country/ Central European financing budget Local budget Private funds Union funds Austria yes - yes - Czech Republic* - yes yes - France yes yes yes - Germany yes yes yes - Poland* yes yes yes yes Slovakia* yes - yes yes Hungary* yes - yes Public private cooperation in Australia Goggle maps 16 8

9 Southern Cross Station Exploreaustralia.net.au 17 Project scope and financing rail modifications, signaling upgrade, commercial development (shopping plaza, a supermarket, offices, apartments and a hotel with proper care of heritage issues 430 milion euro 18 9

10 Southern Cross Station project ABN Amro Australia Shareholder agreement Equity Financing ABN Amro Leighton Contractors Jackson Architecture Grimshaw & Partners Honeywell Limited Delaware North Australia Inflation linked bonds Nominal bullet bond Grimshaw & Partners Jackson Architecture Leighton Contractors Pty Limited Honeywell Limited Delaware North Australia SPV Civic Nexus consortium Design Construction Maintenace Service delivery Concession Lease of facility area Payment Victoria State Connex, V/Line Passenger, Freight Victoria Operation Public private cooperation in Poland 20 10

11 Sopot Tripadvisor.com 21 Sopot Railway Station Mojsopot.pl 22 11

12 Project scope and financing building twin storey underground car parks with access roads and a street level car park, modernizing the existing road network, including the construction of two roundabouts, redeveloping the green areas and landscaping the roof surface of the underground car parks building a two or three star hotel and another six facilities (retail and services). 60 milion euro 23 PPP organization with SPV Finance provider Financing PROJECT COMPANY Charges Users City of Sopot PKP S.A. PPP contract & contribution Private Partner Designer Constructor Operator 24 12

13 6. Final conclusion Worldwide, public private partnership projects are growing in size as governments cannot afford to finance all necessary investment. The financing of investment projects and operations of railway stations should be diversified: state budget, carriersʹ fees or the resources of the managing entity, proceeds generated by commercial operations within the passenger terminals, local government subsidies and public private partnership. 25 Final conclusion (cd) legislation Sopot CS The relations between the local authority and the private investor are largely based on procedures resulting from the Polish system of legislation. Melbourne CS There are guidelines, which focus on whole oflife costing and full consideration of project risks and optimal risk allocation between the public and private sectors

14 Final conclusion (cd) scope of project Sopot CS Melbourne CS cover a number of different tasks varying in terms of the risk involved in financing them Each individual task within the project carries a different risk and it may be difficult to find an investor and a lender ready to accept the entirety of such risk? Involved multiple different real estate and have been completed within single SPV. 27 Final conclusion (cd) financing Sopot CS highly geared Melbourne CS debt and European Union funds 60 milion euro loans and bond issues 430 milion euro 28 14

15 Finally closure of the presentation The different countries, different legal and financial determinants lead similarly to public private cooperation, however the detailed solutions have been different. In both cases the regeneration have been perceived as: a chance to respond to the strategic status of the transport and to be a catalyst to encourage city sustainable development that comprise economic, social and environmental concerns. 29 Thank you for the attention. wojewnik@wzr.ug.edu.pl 30 15